Study on the Impact of Financial Decentralization on China's Green Welfare

Ningjia Lu

doi:10.54097/hbem.v9i.9076

Authors

Ningjia Lu

DOI:

https://doi.org/10.54097/hbem.v9i.9076

Keywords:

Financial Decentralization; Green Welfare; Political Incentive; Fiscal Incentive.

Abstract

The 20th Party Congress pointed out that development should be planned on the basis of the harmonious coexistence of human beings and nature. A reasonable allocation of financial resources is a crucial guarantee for achieving the growth of green welfare. This paper empirically examines the impact of financial decentralization on green welfare based on panel data of 30 Chinese provinces from 2005 to 2019. Results demonstrate that: (1) Financial decentralization significantly promotes regional green welfare, and the effect is more significant in the eastern region than in the central and western region; (2) In terms of specific sub-welfare dimensions, financial decentralization can significantly foster economic welfare, social welfare and environmental welfare, but not resource welfare; (3) Furthermore, political incentive cannot enhance the contribution of financial decentralization to green welfare, and fiscal incentive can significantly reduce the contribution. The findings of this paper provide a new reference for deepening the financial decentralization system reform, ameliorating the assessment system of local governments and upgrading the level of green welfare of Chinese residents.

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